Alarm.com IPO Expected to Hit June 26

June 22, 2015

3:00 pm

The Vienna, VA based security IoT company Alarm.com’s IPO is expected to be available on Friday, June 26 after filing an S-1 form with the US Securities and Exchange Commission on May 22, 2015. Specific terms and a valuation has not been set for the IPO; however, they will be releasing 7 million shares to be offered at between $13 and $15 per share, with a market cap of $627.9 million. Rumors are setting the value for the company at between $1B and $2B.

Founded in 2000 after spinning off from Microstrategy Inc., Alarm.com has two primary focuses in the IoT security space: a software as a service (SaaS) offering and supportive hardware. Initially focusing on home and business security, they have expanded their solutions to complete with the likes of Nest for a more holistic connected home. Their offerings now include energy management and home automation. In a company report from 2014, they had $13.5M in net income on an estimated $167M in revenue.

Alarm.com’s platform reportedly has more than 2.3 million subscribers and connects to over 25 million devices. Their model also includes 5,000 third-party resellers, taking up the number one market share spot for connected home service providers.

The IPO comes at a time when the current smart or connected home competition is quickly heating up. According to a study, in 2013 the smart home market was at $33B, and set to more than double to $71B by 2018. However, at the markets current growth rate of $8B per year, this number will quickly be surpassed. Further, back in 2014 Google purchased popular smart home hardware provider Nest for $3.2B. Both Google and Apple are competitors, but primarily focus on hardware and software rather than a service (active monitoring).

Prior to Alarm.com’s IPO, they completed two funding rounds. A series A in 2009 for $27M and private equity of $136M by Technology Crossover Ventures. They also acquired EnergyHub in 2013 for an undisclosed amount, but at the time had reportedly raised $33.1M.

Alarm.com plans to trade on the Nasdaq under ticker symbol ALRM. BofA Merrill Lynch, Goldman Sachs, and Credit Suisse will serve as the lead underwriters.

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Elliot is an award winning journalist deeply ingrained in the startup world and is often digging into emerging technology and data. When not writing, he’s likely either running or training for a triathlon. You can contact him by email at elliot(@)elliotvolkman.com or follow him on Twitter @thejournalizer.

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